Sensex up 233 points as IT stocks zoom

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Rising for the first time in three days, the Bombay Stock E benchmark Sensex today closed over 233 points higher as funds resumed buying at prevailing low levels mainly in IT sector stocks, amid firm global cues.

The 30-share index commenced the day on a firm note at 19,348.01 and rose further by 233.08 points, or 1.22 per cent, to close at 19,410.84. Sensex had lost 400 points in the last two sessions.

Similarly, the wide-based National Stock Exchange index Nifty gained 66.05 points, or 1.14 per cent, to close at 5,836.95. Also, SX40 index, the flagship index of MCX-SX, closed 152.2 points, or 1.33 per cent higher at 11,565.58.

Brokers said IT company stocks remained in demand as weakening rupee and signs of improving US economy raised hopes of higher revenues.

Country’s top two software exporters Tata Consultancy Services and Infosys, which get more than half of their revenues from the US and European countries, surged remarkably on the dollar gaining against the rupee.

While TCS shot up by 3.26 per cent to Rs 1,534.15, Infosys by 2.29 per cent to Rs 2,460.50. The third biggest software exporter Wipro rose by 2.13 per cent to Rs 350.75.

A firming trend in the global markets after better-than-estimated US jobs data added to signs of recovery in the world’s largest economy, also boosted the earnings outlook for exporters, brokers added.

Out of the 30 BSE index components, 20 stocks gained led by ITC surging 3.74 per cent to Rs 338.50.

Sectorally, the IT sector index gained the most by rising 2.73 per cent to 6,244.37, followed by Fast Moving Commercial Goods (FMCG) by 2.69 per cent to 6,785.40.